2nd May 2023
A generator is a device that converts mechanical energy into electric energy. Hence, it is majorly used to generate electricity in various applications including power plants, wind turbines, and portable generators. It can be powered by a variety of sources, including fossil fuels, such as coal, oil, and natural gas, as well as renewable sources, such as solar and wind power. The type of fuel used to power the generator will depend on the specific application and environmental considerations. Thus, it plays a crucial role in modern society by providing electricity for a wide range of applications, from powering homes and businesses to supporting critical infrastructure and emergency response operations. This enhanced the sale of generators across all industries around the world. It is mainly used as a power-back solution or system such that the operations could continue even during power outages.
The growing demand for energy or electricity during power outages created the requirement for the generator which led to enhanced sales. The increasing frequency of natural disasters, extreme weather events, and aging power grids in some regions have led to more frequent and prolonged power outages, making generators a necessity for many individuals and businesses. Further, the sectors which need uninterrupted power supply such as construction, manufacturing, healthcare, and data centers for their efficient operations, where generators are utilized heavily to provide backup power solutions. Overall, the increasing demand for generators for different sectors, and technological advancements to develop more cost-effective generators drive the market of generator sales in the coming years as expected.
The Global Generator Sales Market has reached a value of $21.6 billion in 2022. This market is projected to grow from $22.8 billion in 2023 to $34.1 billion in 2030 with a CAGR of 5.9% in the forecast period of 2023-2030. This market is estimated based on different key pointers that attribute to the growth which are fuel type such as Diesel, Gas, power rating including up to 50kW, 51-280kW, 281-500kW, 501-2000kW, 2001-3500kW, Above 3500kW, applications such as Standby, Continuous, end-users such as Industrial, Commercial, Residential, and sales channel including Direct, Indirect. Leading companies are Caterpillar, Cummins, Rolls-Royce Holdings, Weichai Group, Kohler Co. Atlas Copco, and Denyo are involved in developing new strategies to launch innovative products to catch hold of a market.
Among fuel types, the diesel segment dominated the generator sales market in the forecast period. Since diesel source-based generators are widely used in backup power solutions for homes, businesses, and industries, cost-effective solutions due to less consumption of fuel and running for long time periods, could able to withstand harsh environments & extreme weather conditions. Further, they are capable of producing high power outputs, making them suitable for powering large equipment and facilities. All these advantages of diesel engine generators continue to grow the sales market of generators in the coming years.
The Asia-Pacific region holds a significant position in the generator sales market compared to other regions. This is due to the increasing demand for reliable power sources in the rapidly growing population in the region. The fastest-growing economic countries in this region such as India and China are facing a propelling demand for power sources to support industries, manufacturing, and commercial operations. In 2021, India’s leading engine manufacturer Cooper Corporation announced the launch of all new-Made-in-India genset series with power ranging from 125kW to 259kW. This is promoted largely to overcome the challenges of providing a continuous power source. The China-based Cool Tech Power announced the 50/50 partnership with the leading company Rolls-Royce to produce the generator sets with MTU engines. Thus, this region continues to drive the market of generator sales due to increasing urbanization, infrastructure development, strong collaborations, and economic growth to have reliable power sources.
Power outage is a serious challenge for the industries and sectors where their operations are completely dependent on it. This created a huge demand for cost-effective and reliable generators. It is recommended that companies should focus on understanding their customer’s needs and providing customized solutions to meet those needs. This could include offering generators with specific features, such as portability, noise reduction, or fuel efficiency. Further, they could develop partnerships with other companies in complementary industries, such as construction, mining, or telecommunications, to expand their customer base and increase sales and continue to expand the market of generator sales in the upcoming years as expected.